Poorer countries receive more aid, governance key factor in allocation.
The study analyzed aid allocation from 1999-2002, considering both altruistic and selfish donor motives. Poorer countries receive more aid from both bilateral and multilateral donors. Aid is directed towards well-governed countries, as measured by the World Bank's CPIA. However, when using the Kaufmann index, aid policy orientation weakens. Multilateral aid is not more poverty- and policy-oriented than bilateral aid. Post-conflict resolution is a significant factor in aid allocation in 2002. Selfish aid motives vary between bilateral and multilateral donors, with export-related self-interest and colonial ties influencing bilateral aid allocation.